Honda Motor Co. is overhauling its hybrid technology as the Japanese automaker prepares to resurrect its iconic Prelude sports car next year, betting on continued demand for gasoline-electric vehicles before a full transition to EVs.
The company unveiled its next-generation e:HEV system featuring a new S+ Shift function that mimics traditional transmission gear changes through software controls. The technology will debut in the revived Prelude in 2025 before expanding across Honda’s hybrid lineup.
The refresh comes as Honda targets 1.3 million annual hybrid sales by 2030 while working to cut production costs by up to 50% compared to 2018 levels. The automaker is developing new 1.5-liter and 2.0-liter engines promising 10% better fuel economy than current models.
A new electric all-wheel drive system will replace mechanical setups, sharing components with future EVs to reduce costs. The platform itself will be 90kg lighter through increased use of shared parts across models.
While Honda aims for all-electric sales by 2040, the company sees strong hybrid demand persisting through the 2020s. The current North American Accord hybrid already achieved 25% lower costs versus its 2018 predecessor through localized production and standardized parts.
The question remains whether Honda’s hybrid push will help or hinder its transition to full electrification as rivals accelerate their EV rollouts.
